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1958 Supreme(MP) 302

IN THE HIGH COURT OF MADHYA PRADESH (GWALIOR BENCH)
A.H. Khan, J.
Dangal Singh
Vs.
Parmanand
Cr. Rev. No. 43 of 1958
Decided On: 29.12.1958

Advocates Appeared:
For Appellant/Petitioner/Plaintiff: Abdul Hafiz

An act can be both a civil wrong and a crime, and the existence of an indemnity clause in a sale-deed does not preclude the filing of a criminal case for cheating.

Headnote:

Cheating - Land Dispute - The court held that an act can be both a civil wrong and a crime, and that an injury can be a civil wrong and a crime when it is a breach of both these duties. The court also emphasized that the existence of an indemnity clause in a sale-deed does not preclude the filing of a criminal case for cheating.

Fact of the Case:

The accused assured the complainant that the land solely belonged to him and induced the complainant to purchase the land. However, it turned out that there were two other persons with interest in the land, leading to the complainant being evicted.

Finding of the Court:

The courts below dismissed the complaint, stating that the liability of the accused was of a civil nature and that criminal proceedings were misconceived. However, the High Court set aside the previous order and directed the Additional District Magistrate to record the evidence of the parties and pass a proper order.

Issues: The main issue was whether the act of the accused amounted to cheating as defined in Section 415 of the Indian Penal Code, and whether the existence of an indemnity clause in the sale-deed precluded the filing of a criminal case.

Ratio Decidendi: The court emphasized that an act can be both a civil wrong and a crime, and that the existence of an indemnity clause in a sale-deed does not preclude the filing of a criminal case for cheating.

Final Decision: The order of the Additional District Magistrate was set aside, and the case was sent back to him for recording the evidence of the parties and passing a proper order.

ORDER

A.H. Khan, J.

1. The facts leading to this revision are that the accused Parmanand is alleged to have assured the complainant Dangal Singh that the land in dispute solely belonged to him and that he alone was entitled to sell it. On the basis of this assurance, the land was bought by the complainant for Rs. 2000/- . This possession of the land was also given to the complainant. But it turned out that there Were two other persons who had interest in the land and the accused was not its sole owner. The other two persons (partners) succeeded in evicting the complainant from the land. On these allegations, the petitioner filed a complaint under Sec. 420 I.P.C. against the accused before the Additional District Magistrate, Bhilsa, which was dismissed under Sec. 203 of the Criminal Procedure Code on the ground that the liability of the accused was of a civil nature and a criminal complaint would not therefore lie in this case. The complainant Sled a revision before the Additional Sessions Judge, Bhilsa, which was also dismissed on the ground that because of the indemnity clause in the sale-deed, the accused cannot be said to have cheated the complainant, He also held that the matter belonged to the province of civil law and that criminal proceedings were thus misconceived.

2. I am afraid both the courts below have not made a correct approach in this case. They have failed to realise that sometimes criminal and civil liabilities can co-exist, and, that an act can both be a civil wrong as well as a crime. A civil wrong is an injury or breach of duty to an individual for which be is entitled to get reparation from the wrong-doer, while a crime is regarded as a breach of duty to public at large, for which the offender is punished by the society or the State. In this view of the matter, an injury can both be a civil wrong and a crime, when it is a breach of both these duties. Notable instances of an act, which is both a civil wrong and a crime are assault, libel and fraud. The object of a civil action is private reparation and satisfaction, but the object of a criminal prosecution is punishment with a view to promote, public interests by prevention of offences. Sometimes an injury may be a crime and hot a civil wrong such as public nuisance, consisting in the obstruction of a highway, where no civil suit lies unless the plaintiff has sustained special damage. Conversely, an injury may only be a civil wrong and not a crime when it lacks the element of mens rea e.g. innocent or mistaken trespass on land. Apart from this an act can also be the basis of criminal as well as civil proceedings. For instance, if a person is defamed, he can institute criminal proceedings under Section 500 of the Indian Penal Code and he can also sue for damages in a Civil Court.

3. Without expressing any opinion oil the merits of this case, if a person has dishonestly induced another to believe that he is the sole owner of a certain land while in fact he is not, and deceived the person into purchasing the land I fail to see why the act does not amount to cheating as defined in Section 415 of the LP. Code. Illustration (i) of Section 15 I.P.C is clear enough on the point. If the facts alleged by the complainant are found to be true by the court, then there is not the least doubt that the offence of cheating has been committed. It is true that on the basis of the indemnity clause incorporated in the sale-deed, the plaintiff can also maintain a civil suit, but that fact does not preclude him from launching a criminal case.

4. For reasons stated above the order of Additional District Magistrate, Bhilsa, is set aside and the case is sent back to him for recording the evidence of the parties and passing a proper order in the case.

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